How much does a Chick-fil-A franchise cost in Canada?

Chick-fil-A Canada invites applications from people who want to become franchisees in Canada. Its own site says the first Canadian restaurant opened in 2019 at Yonge and Bloor, and describes its Operators as local, independent, franchised owners. The company named on the site is Chick-fil-A Canada, ULC. The fee and conditions below are what that franchisor publishes, not an estimate by Deavo.

The one figure the franchisor publishes

Under “Upfront fee”, the Canadian franchising page asks for $15,000 CAD in non-gifted, non-borrowed funds for the initial franchise fee. That is the only dollar amount on the page. It does not set out a total startup cost, so the cost of equipment, a build-out or working capital is not something this page lets you add up. Ask the franchisor for them in writing, along with its disclosure document (see the law below).

What the franchisor says it requires

• The legal right to own and operate a franchise in Canada.
• No bankruptcy in your financial history.
• Full-time, hands-on, day-to-day ownership and operation of the restaurant.
• Divesting yourself of conflicting business ventures.

The page adds that the role is not for people seeking a passive financial investment, and that the selection process is highly competitive with no guarantee of selection. Because the fee must be non-borrowed, ask how any other funding is treated; can a franchise purchase be financed covers the general questions.

Applying is not the same as buying a restaurant

The franchising page describes an application and selection process with the franchisor. It does not describe buying an existing restaurant from a current Operator. If anyone offers you a Chick-fil-A restaurant or a share of one, ask the franchisor in writing whether it approves, and read who has to approve a franchise resale.

What the law gives you before you sign

In Ontario, the Arthur Wishart Act (Franchise Disclosure), 2000 requires a franchisor to give a prospective franchisee a disclosure document, received not less than 14 days before the earlier of signing the franchise agreement (or any other agreement relating to the franchise) and paying consideration, subject to the exceptions in section 5. The Canadian Franchise Association says seven provinces have franchise legislation, and recommends getting a franchise lawyer, accountant and banker involved in due diligence.